AI boom drives SaaS startups towards vertical offerings

THE ARTIFICIAL INTELLIGENCE (AI) boom is reshaping the software-as-a-service (SaaS) industry, pushing companies to shift from broad, cross-industry solutions to domain-specific vertical SaaS offerings.

- S SHANTHI

This transition allows SaaS startups to integrate AI-driven intelligence tailored to meet industry-specific needs, enabling faster adoption and higher returns on investment.

Industry experts say that over 60% of SaaS revenue comes from large enterprises, with global markets driving the demand for vertical SaaS.

Until recently, offering domain-specific solutions was challenging due to technological limitations. However, AI advancements now enable SaaS firms to scale rapidly by selecting industries best suited for tech-driven transformation.

Zoho's new CEO Mani Vembu recently said the company's strategy is to pivot towards domain-specific solutions targeting large enterprises worldwide.

Zoho is focusing on BFSI and healthcare in key markets such as the US, the UK, and West Asia.